Fannie Mae-No Politics (FNMA)

[JOoa0ky]

FNMA should be buying back stock Now !

The UST has the GSE,s Capital it’s just needs returned = Recap and Release.

On top of that FNMA and FMCC...SHOULD BE BUYING BACK STOCK...at these low prices.

Ask yourself the question...when will they ever get the chance again to buy back stock
at these low prices.

That is the correct capital allocation decision under normal circumstances but unfortunately it does not help it become less under capitalized nor does it help them exit conservatorship faster.

Hypothetical situation:
Capital to exit cship: 100B
Current capital: 14B
Short 86B

If you spend 14B on buybacks. You will be short 100B. So how do you make up the 14B you just spent? Sell common shares to make up to 14B...

Back to square one. Step one is to leave c-ship, everything else is secondary.